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help Garcia Company sells snowboards. Each snowboard requires direct materials of $108, ditect labor of $38, variable overhead of $53. and variable selling, general, and
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Garcia Company sells snowboards. Each snowboard requires direct materials of $108, ditect labor of $38, variable overhead of $53. and variable selling, general, and administrative costs of $11. The company has fixed overhead costs of $651,000 and fixed selling. general, and administrative costs of $159,000. It expects to produce and sell 10,800 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cost? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Radar Company sells bikes for $490 each. The company currently sells 4,100 bikes per year and could make as many as 4,450 bikes per year. The bikes cost $260 each to make: $190 in variable costs per bike and $70 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 350 bikes for $480 each. Incremental fixed costs to make this order are $80 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? Project A requires a $325,000 initial investment for new machinery with a five-year life and a salvage value of $47,500. Project A is expected to yield annual income of $23,900 per year and net cash flow of $81,250 per year for the next five years. Compute Project A's accounting rate of return. Rory Company has an old machine with a book value of $81,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $107,000. Rory can sell its old machine now for $71,000. The old machine has variable manufacturing costs of $36,000 per year. The new machine will reduce variable manufacturing costs by $14,400 per year over its five-year useful life. (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. Prepare a keep or replace analysis of income effects for the machines Step by Step Solution
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